How does one speculate in the stock market without large sums of capital?

Answer 1

There's a company called Sharebuilder that allows you to buy small quantities, even fractions of a share. You can have $50 dollars taken out of your bank account every month, for example, and invested in certain stocks. There's a flat fee that makes it more cost efficient to invest more each month, but you can turn your plan off in a particularly tight month, for instance, and just pay the fee.

This is more for long-term investment than speculation, though, since there is also a fee for selling stocks on a particular day, in "real time", or when the stock hits a certain price. The cost structure means it isn't really worthwhile to be buying and selling every few days. It works better for accumulating stocks and selling your shares in a particular stock occasionally. You can even make your stocks a traditional or Roth IRA!

Answer 2

Speculation is just gambling. You can do it by checking the stock prices for a few days and see which all stocks are moving on a daily basis and go invest in it. Make sure that you are in the Bull phase of the market. In bear markets the stocks that go up are called counter cyclical stocks and has to be figured out just like the above process.

Answer 3

Buy penny stocks like King Resources

http://www.kingresources.net

Answer 4

You can trade stock options. Trading stock options provide leverage which allows you to control more stock using less capital.

The simplest example of this is to buy call options on stock you think will go up.

Visit http://www.theoptionsguide.com for more information on options trading.

Answer 5

Stock options selling put's do your homework.